Rising interest rates and other headwinds in the construction industry have pushed builders in some Canadian markets to shelve condominium projects, while others say condo demand will hold up as supply remains tight.
Real estate consulting firm Urbanation released a report this week showing that builders in the Greater Toronto Area (GTA) are slashing the number of condo units they expected to launch this year.
Based on inputs from developers at the start of the year, Urbanation had projected that 35,000 condo units would be available for presales through 2022. In its Q2 report, it said that while some 16,000 units had indeed been put up for sale in the first half of the year, it now only expects 10,000 more units to launch before 2023.
Urbanation expects around 10,000 anticipated units will be delayed or cancelled.